Buoyant Foreign Investments driving the Construction Industry in Myanmar: Ken Research

• Foreign investments in the manufacturing sector constituted 18.7% of the total investmentapproved by the government.

• In March 2015, the government introduced its first National Export Strategy (NES) to boostthe country’s exports.

• Key trade sectors such as garments and textiles, rubber, beans, rice, oilseeds, fisheries andforestry products needs to be aided which is the motive of the above strategy introduced bygovernment.

Ken Research recently announced latest report on, “Construction in Myanmar-Key Trends andOpportunities to 2020” which discusses detailed analysis of infrastructure constructionprojects and the leading players. Report also provides insights on operating environment ofconstruction industry in Myanmar. It also provides information about Myanmar’sinfrastructure construction value chain. Report sheds light on how the existing players canuse this information to gain the competitive edge in the market. The report enables thereader to interpret future outlook on how the market will shape up by the end of thisdecade.

It is projected that during 2016-2020, Myanmar’s construction industry will continue to expand.Growth will be triggered due to improvement in economic conditions, governmentinvestments for the evolution of public infrastructure projects and uplift in foreigninvestments. Government flagship programs such as the National Transport Master Plan,National Export Strategy (NES) and National Electrification Plan are the major contributors forindustry growth for 2011-2015. However, the underdeveloped regulatory and financingenvironment and a lack of transparency in the tendering process will prevent theconstruction industry from expanding at a faster pace. There was revision in the country’sforeign investment law in 2012, allowing foreign investors to own up to 50% of all jointventures by the Myanmar Investment Commission (MIC). This move is expected to fasten thepace of foreign investment. Mismanagement of national finances is the major cause oftrouble in economic growth and Myanmar is also affected external debt, tax evasion andcorruption. A need has emerged for the Government efforts to balance demand and supplyfor housing through the construction of affordable housing units. Government has gonethrough a great transformation shifting from military rule to more domestic type. Politicalreforms were introduced and opened the doors for foreign investment, due to which it issuedoil and gas exploration licenses to Chevron and Shell.

With the aim of renovating the country’s transport infrastructure, the government is implementing the National Transport Master Plan 2014-2030, for a total investment of MMK26.7 trillion (USD 26.8 billion). Of the total, MML11.7 trillion (USD 11.7 billion) will be allocated for the development of road infrastructure, MMK6.5 trillion (USD 6.6 billion) for rail infrastructure, and MMK8.5 trillion (USD 8.5 billion) for inland water, seaport and airport infrastructure. In order to amplify the country’s tourism sector, the government launched the Tourism Master Plan for 2013-2020. It has set a target to attract 7.5 million tourists by 2020. According to the Ministry of Hotels and Tourism, tourist arrivals reached 3.5 million in 2014 and increased to 4.2 million during January-November 2015.

• To know more on the coverage, click on the link below:

• https://www.kenresearch.com/manufacturing-and-construction/infrastructure/construction-myanmar-key-trends/33360-97.html

• Related Reports:

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• Ken Research Ankur Gupta, Head Marketing & Communicationsquery@kenresearch.com+91-124-4230204

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